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Carphone Warehouse declares war on BT with free local calls

CARPHONE WAREHOUSE will this week take the telecoms price war to BT with an offer of free local calls.

The introduction of an American-style phone tariff is intended to accelerate the rapid growth of Talktalk, the mobile retailer’s fixed-line service. Since its launch last year, Talktalk has attracted nearly 400,000 customers.

Although the business still makes a loss, Charles Dunstone, Carphone Warehouse’s chief executive, has become increasingly convinced of its potential. He wants to make deeper inroads into BT’s 20m residential customers.

Twenty years after privatisation, BT still controls more than 70% of the residential market.

An offer of free local calls is likely to have a simple appeal to potential customers — a hallmark of Talktalk’s marketing. It has structured tariffs to mirror BT’s, making price comparisons easier. It claims to offer savings of up to 30% off a BT phone bill. The company has even hired Maureen Lipman, star